H.S.H. Prince Michael of Liechtenstein: «I See a Global Threat»
Donald Trump should not be taken literally, says H.S.H. Prince Michael of Liechtenstein in an interview with finews.asia. However, what we are witnessing today in the United States is a new kind of state intervention, making it all the more important to structure one’s wealth carefully. Prince Michael has also invested in cryptocurrencies, citing the traditional financial system's sluggishness, complexity, and high costs.
Your Serene Highness, you frequently lament the increasingly restricted freedom of expression in our society. The politically left-wing «woke movement» is a major contributor. But don’t you also think that US President Donald Trump has accelerated this development just as much?
Certainly. Donald Trump has relatively clear strategies and should be taken seriously – but not literally. What we are seeing in the US today is indeed a new form of state interference.
Sooner or later, this also affects private property. Doesn’t that concern you?
It does. However, private property is now under threat everywhere in the world. State claims are becoming increasingly excessive; just consider the numerous tax and regulatory measures that aim to limit people’s ability to freely dispose of their assets.
«All of this is an extreme restriction of property rights.»
This is happening both nationally, through wealth and inheritance taxes, and internationally, for example, via the OECD. All of it represents a severe curtailment of property rights.
How does the state justify claiming a percentage, or even half, of someone’s estate upon death, simply for committing the «sin» of dying? And yet, private property is one of the most important drivers of societal prosperity.
How can financial assets be protected today from state interference?
It’s more important than ever to structure your wealth properly, which means choosing the right legal frameworks and jurisdictions, even if this is becoming increasingly complex. But it's absolutely essential.
«The traditional financial system is indeed very sluggish, complex, and expensive.»
One must also remember that wealth is destroyed not only by external forces but also by extravagance. In that sense, the most important thing is to view ownership – and by extension, wealth – as one of the greatest responsibilities.
What advice do you give as a long-standing financial expert?
There are no universal solutions. If, for example, you own a business that is tied to a specific location, your options are limited. But overall, I believe foresight is key.
What exactly do you mean by that?
One shouldn’t chase after every fashionable trend. Taking responsibility is something entirely different.
Cryptocurrencies are one such trend, as an alternative to fiat money. Or are they?
I see two explanations. First, the technology is now so advanced and widespread that it’s here to stay. At the same time, trust in fiat currencies is undeniably eroding.
Second, the traditional financial system is indeed very sluggish, complex, and expensive. In many respects, it's inefficient. For example, if I want to make a donation to Brazil, the transfer fees alone eat up a significant portion of the funds. In short, the system is riddled with inefficiencies.
«He never tired of stressing how evil, bad, and dangerous Bitcoin was.»
This is precisely where the digital, decentralized financial world comes in. How far it will go, I don’t know. I only know that major changes are on the horizon—and that’s fascinating.
Are you personally invested in Bitcoin?
Yes, a little. I first became interested in it, if I recall correctly, in 2013. At the time, Jacob Joseph Lew was the US Treasury Secretary. He never tired of stressing how evil, bad, and dangerous Bitcoin was.
That made me think: if he’s saying that, it must be a hot topic. When something is described as borderline criminal, it becomes all the more interesting. I invested a small amount back then, which in hindsight was clearly a mistake.
The younger generation – known as «NextGen» in banking – seems to take a more relaxed approach. Would you agree?
Yes and no. Of course, they understand today’s technologies and tools much better. But regardless of age, the central question remains: do you feel responsible for the wealth you hold?
Personal responsibility is also a central theme of the annual Gottfried von Haberler Conference, which you organized for the 19th time last week. What originally prompted you to launch it 20 years ago?
It started with the European Center of Austrian Economics, a think tank based on the principles of the Austrian School of Economics, particularly those of economist Gottfried von Haberler, who was a Liechtensteiner and taught at Harvard.
«Unfortunately, this assumption was wrong.»
We aimed to find answers and solutions to the challenges of our time. A conference was therefore a logical step.
Today, you say that our values are under pressure. Twenty years ago, the world was very different. What motivated you back then?
The key moment was 1989. At the time, many believed that socialism had been defeated and hoped for a return to a more individualistic society. Unfortunately, that assumption was wrong. Instead, state intervention has only continued to grow globally.
How do you explain this phenomenon?
I believe it’s a psychological matter. The Bible already tells us that after a few good years, people become arrogant and excessive until a counterreaction sets in. Today, we are caught in a wide tension between individualism and collectivism.
The latest developments in the US under the Trump administration are hard to gauge. Do you think the US has a problem?
I wouldn’t put it that way. Europe is also in a contradictory and confusing situation. Various supranational organizations, such as the OECD or the G20, seek to standardize everything. What they all have in common is an attempt to control citizens. That’s where I see a global threat.
«We’re trading freedom for an illusion called security.»
Naturally, it is not the politicians’ responsibility, but rather the duty of each citizen to defend their freedom. That’s where the problem lies: it’s often more convenient to shift responsibility to someone else, like the state. We trade away freedom for an illusion called security.
Speaking of security, Liechtenstein’s financial center has regained its reputation as a safe and modern hub following a turbulent period of tax scandals some 20 years ago. To what do you attribute that success?
A combination of factors. We are surrounded by what I would call «favorable parameters»: a stable political system, a debt-free state, and a government that doesn’t suddenly become greedy or embark on tax adventures. Our triple-A credit rating is also important, as is our favorable position through the customs treaty with Switzerland and our membership in the EEA.
«As a microstate – like Switzerland – you simply have to try harder.»
We also know that we must remain adaptable to anticipate and respond to trends early on. As a microstate, just like Switzerland, you simply have to work harder to stay competitive.
That is a major challenge, but also a tremendous opportunity. We must continuously improve – become more productive and efficient.
H.S.H. Prince Michael of Liechtenstein is Chairman of the Board of Trustees at the Vaduz-based liberal think tank European Center of Austrian Economics Foundation (ECAEF). The ECAEF promotes the Austrian School of Economics and fosters understanding of its socioeconomic theory through various initiatives. This interview was conducted during the 19th Gottfried von Haberler Conference, organized by the ECAEF. Prince Michael also serves as Executive Chairman of the Board of Directors at Industrie- und Finanzkontor in Vaduz, a fiduciary firm specializing in wealth preservation and protection.
